The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks

Phillip C. Nell, Björn Ambos, Bodo B. Schlegelmilch

Research output: Contribution to journalArticle

37 Citations (Scopus)

Abstract

MNCs have been conceptualized as differentiated networks that, in turn, are embedded in external networks. Previous research has predominantly focused on the embeddedness of established subsidiaries into their local environment, omitting to shed light on the phenomenon of headquarters linkages to the local context which creates embeddedness overlap. We develop a model of why MNCs develop overlapping linkages to local subsidiary networks even if the subsidiaries have grown out of the initial start-up phase. Using detailed information on 168 European subsidiaries, we find that MNCs build and maintain more overlapping network ties when subsidiaries are high performers, hold important resources, operate in turbulent environments, and are closely connected to multinational actors as opposed to purely domestic firms.
Original languageEnglish
Pages (from-to)497-505
Number of pages9
JournalJournal of World Business
Volume46
Issue number4
DOIs
Publication statusPublished - Oct 2011

ASJC Scopus subject areas

  • Business and International Management
  • Marketing
  • Finance

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